Govt pressured on carbon trading


The Federal Opposition says new research shows the Government should move quickly to bring in a carbon trading scheme.
Prime Minister John Howard's task force on an emissions trading scheme hands its report to the Government this week.
Greenhouse lobby group the Climate Institute has released research showing power costs would rise less if the Government moved quickly to bring in a mix of measures, including emissions trading, than if it waited.
"The longer you delay taking action, if you're going to achieve the same environmental outcome, the faster you need to reduce emissions in the future," spokesman Erwin Jackson said.
"So those things together combine to make the overall impact on carbon pricing at a later period much higher and that signals that if you delay action in the electricity sector, you're setting the industry and probably the wider economy up for a shock in the coming decades."
Labor environment spokesman Peter Garrett says the modelling vindicates Labor's policies.
"We will be able to minimise both the impact on price rises and maximise the contribution that we can have to reducing greenhouse emissions," he said.
Mr Garrett is urging a fast response.
"If you act now and don't delay, then you can begin the process of reducing emissions but do it in a way which doesn't damage the economy," he said.
Prime Minister John Howard is signalling there will be a carbon trading scheme but in his radio message, he warns of the economic effects.
"If we don't get this response right, then the economic consequences will be severe," he said.
"If we overreact, the economy will be damaged and jobs lost."
The Government is expected to announce its emissions trading plans within weeks.
Meanwhile, state and territory leaders have written a joint letter to Mr Howard saying they would like to be included in a national emissions trading scheme.
The letter re-states the premiers' and chief ministers' position that they have committed to starting a carbon trading scheme by 2010.
Seventy-five professors of economics have also called on the Federal Government to stop undermining international efforts to tackle climate change and ratify the Kyoto Protocol without delay.
They are among 271 Australian university economists who have signed a statement drawing attention to the economic damage that could be done to Australia for failing to reduce greenhouse gas emissions.